NEW YORK – MGM is reporting third-quarter net income of $149.1 million, its first quarterly financial report since a deadly mass shooting at its Mandalay Bay property in early October.
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The shooting did not have an impact on the current results. But, cancellations and marketing suspensions are expected to weigh down fourth-quarter results.
On Oct. 1, gunman Stephen Paddock, a 64-year-old high-stakes gambler and real estate investor, unleashed a barrage of gunfire at concertgoers from his high-rise suite at the Mandalay Bay hotel and casino.
In a statement, Chairman and CEO Jim Murren said the company expects a “short-lived” uptick in cancellations to have a near-term effect, along with a temporary suspension of marketing efforts. Revenue per available room, a key measure, will likely see a percentage decline in the single digits.
“Since restarting such (marketing) efforts, our booking pace has largely rebounded to normal levels,” he said.
The Las Vegas company’s third-quarter profit translates to 26 cents per share, or 33 cents per share when adjusted for non-recurring items. That’s in line with Wall Street expectations, according to a survey by Zacks Investment Research.
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Revenue jumped 12.3 percent to $2.83 billion, surpassing Street forecasts of $2.77 billion.
Revenue per available room, a key measure for hotels and resorts, rose 4 percent to $156 at the company’s Las Vegas Strip resorts.
Casino revenue jumped 32 percent as the company continues to incorporate the Borgata Hotel Casino and Spa into its operations. It purchased the casino and resort in August of 2016.
Shares of MGM Resorts International added nearly 6 percent to $33.31 in afternoon trading.
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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on MGM at https://www.zacks.com/ap/MGM
